Nils Pratley on finance | The Guardianhttps://www.theguardian.com/business/nils-pratley-on-finance
The Guardian's financial editor on the biggest issues in businessen-gbGuardian News and Media Limited or its affiliated companies. All rights reserved. 2016Sat, 10 Dec 2016 03:39:20 GMT2016-12-10T03:39:20Zen-gbGuardian News and Media Limited or its affiliated companies. All rights reserved. 2016The Guardianhttps://assets.guim.co.uk/images/guardian-logo-rss.c45beb1bafa34b347ac333af2e6fe23f.pnghttps://www.theguardian.com
Why is Murdoch taking over Sky now? Blame Brexit and Netflixhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/09/murdoch-taking-over-sky-blame-brexit-and-netflix-sterling-21st-century-fox
<p>Falling sterling, and the rise of online media providers has given the billionaire the perfect chance to succeed in 2016 where he failed in 2011</p><p><a href="https://www.theguardian.com/business/2016/dec/09/rupert-murdochs-fox-agrees-deal-to-buy-sky">Why would Rupert Murdoch pounce on Sky now</a>? First, because he was only ever biding his time after <a href="https://www.theguardian.com/media/2011/jul/13/rupert-murdoch-gives-up-bskyb-bid">the humiliation of the failed bid in 2011.</a> As 21st Century Fox said in its formal announcement, it has long regarded its 39% shareholding as “not a natural end position”.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/dec/09/rupert-murdochs-fox-agrees-deal-to-buy-sky">Rupert Murdoch's Fox agrees deal to buy Sky</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/09/murdoch-taking-over-sky-blame-brexit-and-netflix-sterling-21st-century-fox">Continue reading...</a>Sky plcBusinessRupert Murdoch21st Century FoxMediaMergers and acquisitionsFri, 09 Dec 2016 19:33:14 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/09/murdoch-taking-over-sky-blame-brexit-and-netflix-sterling-21st-century-foxPhotograph: Kim Kulish/Corbis via Getty ImagesPhotograph: Kim Kulish/Corbis via Getty ImagesNils Pratley2016-12-09T19:33:14ZSports Direct chairman should face the final whistle | Nils Pratleyhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/08/sports-direct-chairman-should-face-the-final-whistle
<p>Profits have dived and the company has done a deal with its founder’s daughter – it’s time to do the decent thing and resign</p><p>The morale of staff at Sports Direct has suffered, <a href="https://www.theguardian.com/business/2016/dec/08/sports-direct-profits-mike-ashley-brexit-vote">says chairman Keith Hellawell</a>, but here’s news to cheer them up: profits may have halved but the company can still afford to spend £40m on a new corporate jet. Employees can even hire it themselves for a jolly – though they will have to pay “open market rates”.</p><p>But the arrangement that will surely infuriate outside shareholders is the deal whereby Sports Direct will buy cosmetics – under that must-have brand Sport FX – from a company where founder Mike Ashley’s 20-year-old daughter, Matilda, is a director.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/dec/08/sports-direct-profits-mike-ashley-brexit-vote">Sports Direct chairman criticises 'extreme campaign' as profits fall 57%</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/08/sports-direct-chairman-should-face-the-final-whistle">Continue reading...</a>Sports Direct InternationalRetail industryBusinessUK newsCorporate governanceThu, 08 Dec 2016 12:21:51 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/08/sports-direct-chairman-should-face-the-final-whistlePhotograph: Darren Staples/ReutersPhotograph: Darren Staples/ReutersNils Pratley2016-12-08T12:21:51ZPfizer feels wrath of CMA for overcharging NHS | Nils Pratleyhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/07/pfizer-feels-wrath-of-cma-for-overcharging-nhs
<p>Pharma giant is appealing against a record £84m fine, but it can hardly be surprised by backlash to hiking price of drug by 2,600%</p><p>“We are part of the NHS team,” boasts Pfizer in a fuzzy claim on its UK website. But it’s not. On the evidence presented by the Competition and Markets Authority, which whacked the US company with <a href="https://www.theguardian.com/business/2016/dec/07/pfizer-fined-nhs-anti-epilepsy-drug-cma">a record £84m fine for breaking competition law</a>, Pfizer is a company that thinks it OK to raise the price of an ancient drug by 2,600% by exploiting a loophole. The annual bill for the NHS jumped from £2m to £50m.</p><p>The price-hiking wheeze was artful. Pfizer sold the distribution rights to an anti-epilespsy drug called Epanutin to Hertfordshire-based Flynn Phama in September 2012. As a branded medicine, Epanutin was covered by price regulation. But Flynn immediately de-branded, or genericised, the medicine. Pfizer continued to manufacture and supply the drug but, critically, in generic form both parties could charge what they wished. The result was a jump in the price of a 100mg pack from £2.83 to £67.50, later reduced to £54.</p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/07/pfizer-feels-wrath-of-cma-for-overcharging-nhs">Continue reading...</a>BusinessPfizerPharmaceuticals industryTataWed, 07 Dec 2016 19:27:43 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/07/pfizer-feels-wrath-of-cma-for-overcharging-nhsPhotograph: Justin Lane/EPAPhotograph: Justin Lane/EPANils Pratley2016-12-07T19:27:43ZSpread betting firms end winning run as FCA clamps downhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/06/spread-betting-firms-end-winning-run-as-fca-clamps-down
<p>Companies accept the inevitable as UK regulator finally takes action – but why has it taken so long?</p><p>Read the spread betting firms’ responses to <a draggable="true" href="https://www.theguardian.com/business/2016/dec/06/spread-betting-industry-loses-1bn-after-city-watchdog-steps-in">the Financial Conduct Authority’s proposed clampdown</a> and you’ll notice an absence of outrage. The firms didn’t squeal that a heavy-handed regulator is treading on ground it doesn’t understand. They didn’t protest that their clients are all financial sophisticates who have a deep appreciation of the perils that can lurk within leveraged products like contracts for difference.</p><p>Instead, there was acceptance that cooperation was the only credible stance to adopt, even when the FCA had just caused share prices across the sector to crash by more than a third. The spread betting firms knew this moment was coming. Sooner or later, even a half-awake regulator was bound to notice that it was a bad idea to allow retail customers to risk their wealth by playing at being old-style proprietary traders at an investment bank.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/dec/06/what-is-financial-spread-betting-why-do-most-people-lose-money">What is financial spread betting and why do most people lose at it?</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/06/spread-betting-firms-end-winning-run-as-fca-clamps-down">Continue reading...</a>Financial Conduct AuthorityFinancial sectorRegulatorsBusinessEnergy industryWPPTue, 06 Dec 2016 19:14:57 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/06/spread-betting-firms-end-winning-run-as-fca-clamps-downPhotograph: David Levene for the GuardianPhotograph: David Levene for the GuardianNils Pratley2016-12-06T19:14:57ZCould Matteo Renzi's exit lead to an Italian bank rescue?https://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/05/mario-renzi-bank-eurozone
<p>With eurozone authorities willing to bend their own rules, a solution could be at hand – though it would fix few long-term issues </p><p>Investors’ ability to look on the bright side on political turmoil is remarkable. In the case of Italy, the departure of Matteo Renzi, the market-friendly centre-left prime minister, was followed quickly by the thought that the crisis in the country’s banking system may, counterintuitively, become easier to address.</p><p>That wasn’t last week’s theory, of course. Back then, Renzi’s survival was seen as critical to encouraging private sector investors to cough up billions of euros of new capital <a href="https://www.theguardian.com/business/2016/dec/05/monte-dei-paschi-shares-fall-italian-referendum-result">to refinance the likes of Banca Monte dei Paschi di Siena</a> and UniCredit.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/blog/2016/dec/05/italy-euro-economy-competitiveness">How Italy became this century's 'sick man of Europe'</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/05/mario-renzi-bank-eurozone">Continue reading...</a>EconomicsBusinessItalyMatteo RenziWorld newsMon, 05 Dec 2016 20:27:52 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/05/mario-renzi-bank-eurozonePhotograph: Bloomberg/Bloomberg via Getty ImagesPhotograph: Bloomberg/Bloomberg via Getty ImagesNils Pratley2016-12-05T20:27:52ZFallout from Italy's referendum will be both financial and politicalhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/01/italy-referendum-matteo-renzi-fallout-eurozone-banking-crisis-asos-glencore
<p>If the Italian PM loses the vote and quits, it would make it harder to fix a banking crisis that should have been tackled decades ago</p><p>The eurozone crisis never went away; it was just overlooked in the Brexit upheaval. But you can rely on Italy to trigger <a href="https://www.theguardian.com/world/2016/dec/01/italy-referendum-q-and-a-economic-questions-answered">thoughts of catastrophe</a> and, sure enough, the arrival of this weekend’s referendum on constitutional reform has spooked markets. </p><p>The yield on 10-year Italian debt has doubled from 1% to 2% since August, outpacing the rise in yields on most other eurozone sovereign debt. The euro has even weakened against the supposedly down-and-out pound. A euro cost 90p a month ago but now fetches 84p.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/30/with-its-deal-on-barrel-quotas-opec-is-back-on-the-radar-for-now">With its deal on barrel quotas, Opec is back on the radar – for now</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/01/italy-referendum-matteo-renzi-fallout-eurozone-banking-crisis-asos-glencore">Continue reading...</a>BusinessItalyEuropeWorld newsMatteo RenziGlencoreAsosThu, 01 Dec 2016 19:00:56 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/dec/01/italy-referendum-matteo-renzi-fallout-eurozone-banking-crisis-asos-glencorePhotograph: eye35.pix / Alamy Stock Photo/Alamy Stock PhotoPhotograph: eye35.pix / Alamy Stock Photo/Alamy Stock PhotoNils Pratley2016-12-01T19:00:56ZWith its deal on barrel quotas, Opec is back on the radar – for nowhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/30/with-its-deal-on-barrel-quotas-opec-is-back-on-the-radar-for-now
<p>Cuts of 4.5% in production mark a ‘historic moment’, says the organisation. Let’s judge in six months’ time <br></p><p>There is life is the old cartel yet, it seems. A year ago, <a href="https://www.theguardian.com/business/2015/dec/30/oil-iran-saudi-arabia-russia-venezuela-nigeria-libya">obituaries were being written for Opec </a>when, despite much bullish talk, it couldn’t agree any production cuts. Now the 14 members – soon to be reduced to 13 as Indonesia sits out for a while – <a href="https://www.theguardian.com/business/2016/nov/30/oil-price-opec-cut-in-output-saudi-arabia-deal-market">have agreed that 1.2m barrels a day will be removed</a>, a reduction in Opec’s volumes of about 4.5%. It’s a “historic moment”, says the organisation.</p><p>In a sense, it is. Opec hasn’t managed such a display of unity since 2008. Regional rivals Saudi Arabia and Iran have found a way to share the burden of lower production, which is a significant development if it lasts. The oil price rose 8% to $50 a barrel.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/nov/30/oil-price-opec-cut-in-output-saudi-arabia-deal-market">Oil price surges as Opec agrees first cut in output since 2008</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/30/with-its-deal-on-barrel-quotas-opec-is-back-on-the-radar-for-now">Continue reading...</a>OpecSaudi ArabiaIranOilBusinessCommoditiesMark CarneyBank of EnglandEU referendum and BrexitRoyal Bank of ScotlandPoliticsWed, 30 Nov 2016 19:27:03 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/30/with-its-deal-on-barrel-quotas-opec-is-back-on-the-radar-for-nowPhotograph: Christian Bruna/EPAPhotograph: Christian Bruna/EPANils Pratley2016-11-30T19:27:03ZTories' corporate reform proposals a far cry from May's radical pledgehttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/29/tories-corporate-reform-proposals-a-far-cry-from-mays-radical-pledge
<p>PM performed linguistic gymnastics to recast her ‘workers on boards’ vow, now green paper offers little more than tweaks</p><p>Theresa May <a href="https://www.theguardian.com/politics/2016/jul/11/theresa-may-tory-leadership-pitch-andrea-leadsom">promised radicalism on executive pay and boardroom governance</a> but her government’s <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/573120/beis-16-56-corporate-governance-reform-green-paper.pdf">green paper</a> is not that. Most of the proposals represent tweaks to the current setup. The corporate lobby, one suspects, will breathe a sigh of relief. The pay of the average FTSE 100 chief executive has increased from 47 times that of the average worker in 1998 to 128 times last year. On the basis of this document, it would be hard to conclude that the gap is about to close.</p><p>The prime minister had already performed linguistic gymnastics to recast her promise to introduce workers’ representatives on boards; it turned out that her idea didn’t involve actual workers on actual boards, just mechanisms for their “voices” to be heard. It now appears that even her plan to give shareholders an annual binding vote on boardroom pay could be destined <a href="https://www.theguardian.com/business/2016/nov/29/government-business-shareholders-executive-pay-greg-clark">for reinterpretation</a>.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/nov/29/government-business-shareholders-executive-pay-greg-clark">Government says it will 'hold business to high standard' with reforms</a> </p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/nov/29/bt-openreach-competition-ofcom-european-commission">BT under increasing pressure from Ofcom to split from Openreach</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/29/tories-corporate-reform-proposals-a-far-cry-from-mays-radical-pledge">Continue reading...</a>BusinessCorporate governanceTheresa MayConservativesPoliticsUK newsTue, 29 Nov 2016 18:38:40 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/29/tories-corporate-reform-proposals-a-far-cry-from-mays-radical-pledgePhotograph: Peter Nicholls/AFP/Getty ImagesPhotograph: Peter Nicholls/AFP/Getty ImagesNils Pratley2016-11-29T18:38:40ZTheresa May should ignore objections to publishing pay ratios | Nils Pratleyhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/28/theresa-may-should-stick-to-her-guns-over-pay-ratios
<p>Disclosing the difference between the chief executive’s pay and a company’s median earner is a modest proposal whose time has come</p><p>Executive pay reforms do not come much more modest than the idea of requiring public companies to say how much the chief executive is paid relative to the firm’s median earner. Nothing would have to happen as a consequence. Shareholders would not be asked formally if the ratio is too high or too low. The boss’s pay would not have to be capped at a fixed multiple. Instead, the hope is that boards, occasionally, might be embarrassed into exercising a little discipline.</p><p>Yet even this gentle proposal, likely to be included in t<a href="https://www.theguardian.com/business/2016/nov/28/executive-pay-under-unprecedented-scrutiny-iod-chief">he government’s green paper on corporate governance</a> on Tuesday, is running into resistance. Pay ratios are too crude and could mislead, runs one argument, because an investment bank, where lots of people tend to earn megabucks, could seem to be a “fairer” employer than a supermarket chain employing tens of thousands of shelf-stackers and checkout assistants. Worse, pay ratios could prove inflationary if bosses demand a higher place in a theoretical league table, runs another objection.</p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/28/theresa-may-should-stick-to-her-guns-over-pay-ratios">Continue reading...</a>Corporate governanceEconomicsPhilip HammondUK newsBusinessAberdeen Asset ManagementHendersonSports Direct InternationalRetail industryPoliticsMon, 28 Nov 2016 20:16:49 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/28/theresa-may-should-stick-to-her-guns-over-pay-ratiosPhotograph: Justin Tallis/AFP/Getty ImagesPhotograph: Justin Tallis/AFP/Getty ImagesNils Pratley2016-11-28T20:16:49ZHammond's £400m for venture capital funds is no joke – unfortunatelyhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/24/hammonds-400m-for-venture-capital-funds-is-no-joke-unfortunately
<p>Chancellor’s cash to help startups grow to scale is welcome, but it’s a mere drop in the ocean – especially after Skyscanner sale</p><p>The <a href="https://www.theguardian.com/politics/2016/nov/23/philip-hammond-those-autumn-statement-jokes-in-full">best joke</a> in Philip Hammond’s autumn statement was the line about how he is injecting £400m of venture capital funding into the British Business Bank “to tackle the longstanding problem of our fastest-growing technology firms being snapped up by bigger companies, rather than growing to scale”. A day later, one such UK pioneer, Edinburgh-based Skyscanner, <a href="https://www.theguardian.com/business/2016/nov/24/skyscanner-sold-to-chinas-ctrip-in-14bn-deal">is being bought by large Chinese travel group Ctrip for £1.4bn</a>, a sum that makes Hammond’s £400m fire-fighting fund look like a water pistol.</p><p>The Treasury might argue that it has smaller, earlier-stage companies in mind for its £400m and that <a href="https://www.skyscanner.net/">Skyscanner</a>, boasting 60 million users a month for a service that scans the internet for cheap flights, had already achieved scale.</p><p> <span>Related: </span><a href="https://www.theguardian.com/commentisfree/2016/nov/23/autumn-statement-panel-make-a-difference-philip-hammond">How will the autumn statement change Britain? Our panel’s views | Matthew d’Ancona, Martin Kettle, Gaby Hinsliff, Aditya Chakrabortty and Polly Toynbee</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/24/hammonds-400m-for-venture-capital-funds-is-no-joke-unfortunately">Continue reading...</a>Autumn statement 2016BusinessUK newsTravel websitesEconomic policyPoliticsTravelReal estatePhilip HammondGeorge OsborneOffice for Budget ResponsibilityBudget deficitEconomicsGovernment borrowingEU referendum and BrexitThu, 24 Nov 2016 20:28:46 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/24/hammonds-400m-for-venture-capital-funds-is-no-joke-unfortunatelyPhotograph: Justin Tallis/AFP/Getty ImagesPhotograph: Justin Tallis/AFP/Getty ImagesNils Pratley2016-11-24T20:28:46ZDon't mistake autumn statement for infrastructure splurge | Nils Pratleyhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/23/dont-mistake-autumn-statement-for-infrastructure-splurge
<p>Details are scant and spending is spread over five years, with uncertainty over what government wants to build</p><p>Do not run away with the idea that the chancellor has borrowed the clothes of Donald Trump and ordered an infrastructure splurge. Ploughing £23bn into a new national productivity investment fund sounds impressive until you remember that the HS2 high-speed railway, funded separately, is due to cost £56bn at the last count.</p><p>Remember, too, that the £23bn will be spent over five years, so an average of £4.6bn a year. And note that the spending is weighted towards the later years; in the first year, 2017-18, the figure is just £2.4bn.</p><p> <span>Related: </span><a href="https://www.theguardian.com/uk-news/2016/nov/23/philip-hammond-brexit-vote-borrowing-autumn-statement">Philip Hammond admits Brexit vote means £122bn extra borrowing</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/23/dont-mistake-autumn-statement-for-infrastructure-splurge">Continue reading...</a>Autumn statement 2016BusinessUK newsEconomicsTax and spendingPoliticsHousing marketReal estatePropertyMoneyWed, 23 Nov 2016 19:15:03 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/23/dont-mistake-autumn-statement-for-infrastructure-splurgePhotograph: Dan Kitwood/Getty ImagesPhotograph: Dan Kitwood/Getty ImagesNils Pratley2016-11-23T19:15:03ZChancellor picks goodies selectively from his autumn statement baghttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/23/chancellor-philip-hammond-letting-fees-housing
<p>Philip Hammond seeks applause by announcing action on letting fees and housing – but what has he still to reveal?</p><p>Philip Hammond is clearly keen to tell us he has a populist touch. Even George Osborne never issued a formal pre-announcement of the goodies in his bag. The new chancellor’s approach takes the Treasury’s news management operation to new heights (or depths, depending on your point of view) but Hammond has at least created a talking point by slapping a ban on the upfront fees letting agents charge their tenants.</p><p>Everybody can applaud that measure – or, rather, everybody apart from the agents, but they have only themselves to blame. Upfront fees have become divorced from the costs of arranging a tenancy and are instead a means to gouge the tenant. London-based Foxtons <a href="http://www.foxtons.co.uk/let/fees_and_terms/">charges £420 per tenancy</a>, which is essentially a fee for printing out a standard letter and is ridiculous given the princely cut of the rent normally enjoyed by the agent.</p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/23/chancellor-philip-hammond-letting-fees-housing">Continue reading...</a>BusinessEconomic policyPoliticsUK newsDiageoCompassUnileverWed, 23 Nov 2016 00:01:49 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/23/chancellor-philip-hammond-letting-fees-housingPhotograph: Matt Cardy/Getty ImagesPhotograph: Matt Cardy/Getty ImagesNils Pratley2016-11-23T00:01:49ZMay obscures workers-in-boardrooms U-turn with verbal gymnasticshttps://www.theguardian.com/politics/2016/nov/21/theresa-may-cbi-speech-workers-in-boardrooms-u-turn
<p>Promise of inclusive capitalism is replaced by appeal to CBI members to please be nicer in future<br><br></p><p>What was the point of Theresa May’s song and dance about putting workers and consumers on company boards? She first performed the routine in July in her <a href="https://www.theguardian.com/politics/2016/jul/11/theresa-may-tory-leadership-pitch-andrea-leadsom">pitch to be leader of the Conservative party</a> and then, as if to emphasise the seriousness of her intent, she repeated it in her speech to the party’s conference in October. Now she has abandoned the idea. The business world made a fuss and May has backed down.</p><p>The relevant passage of the PM’s speech to the CBI on Monday was an exercise in verbal gymnastics designed to obscure the U-turn. Don’t be fooled. This is a retreat, pure and simple, and May is silly to pretend otherwise. Previously the PM was talking plainly about having “not just consumers represented on company boards, but employees as well”, while the new approach merely deems it important that “the voices of workers and consumers should be represented”.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/nov/21/theresa-may-force-firms-appoint-workers-boards-cbi">Theresa May: I won't force companies to appoint workers to their boards</a> </p> <a href="https://www.theguardian.com/politics/2016/nov/21/theresa-may-cbi-speech-workers-in-boardrooms-u-turn">Continue reading...</a>Theresa MayPoliticsUK newsConservativesBusinessCorporate governanceConfederation of British Industry (CBI)Mon, 21 Nov 2016 19:24:38 GMThttp://www.theguardian.com/politics/2016/nov/21/theresa-may-cbi-speech-workers-in-boardrooms-u-turnPhotograph: Justin Tallis/AFP/Getty ImagesPhotograph: Justin Tallis/AFP/Getty ImagesNils Pratley2016-11-21T19:24:38ZEd Balls enters stage left with decent idea on central bank independencehttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/17/ed-balls-enters-stage-left-with-decent-idea-on-central-bank-independence
<p>Former shadow chancellor knows a thing or two about such matters, having been an architect of the Bank of England’s independence in 1997</p><p>At last, the troubled question of how much central bank independence is desirable receives sensible political analysis.</p><p>Ed Balls, Strictly speaking, isn’t a politician these days. But the former shadow chancellor knows a thing or two about such matters, having been an architect of the Bank of England’s independence in 1997, and <a draggable="true" href="https://www.theguardian.com/business/2016/nov/17/ed-balls-bank-of-england-strictly-come-dancing">his nuanced take</a> puts the crude populism of the likes of Michael Gove and William Hague to shame.</p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/17/ed-balls-enters-stage-left-with-decent-idea-on-central-bank-independence">Continue reading...</a>BusinessBank of EnglandThu, 17 Nov 2016 19:42:37 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/17/ed-balls-enters-stage-left-with-decent-idea-on-central-bank-independencePhotograph: Jay Brooks/BBC/PAPhotograph: Jay Brooks/BBC/PANils Pratley2016-11-17T19:42:37ZSnapchat's potential $25bn flotation may sink company's appealhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/16/snapchats-possible-25m-flotation-may-sink-companys-appeal
<p>Amid rumours that it is eyeing an IPO, the app’s fast and furious business model may well put off advertisers</p><p>There is a lot of fake news around on social media these days, but there is a specific reason why we cannot be 100% certain that the owner of Snapchat has filed for an initial public offering (IPO), or flotation. Regulations in the US allow companies with revenues of less than $1bn (£800m) to keep the process private in its early stages. Snap, as the parent is called, falls into that category, thus the plan to go public has not been announced, merely <a href="https://www.theguardian.com/technology/2016/nov/15/snapchat-ipo-video-app-worth">hinted at</a>.</p><p>Hold on, you might say, if Snapchat isn’t even bringing in $1bn-a-year in revenue how can it possibly be worth the rumoured $20bn-$25bn? Well, quite. This IPO takes us back to a world of hype in which heroic assumptions are made about a social media newcomer’s ability to attract advertising dollars.</p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/16/snapchats-possible-25m-flotation-may-sink-companys-appeal">Continue reading...</a>SnapchatMorrisonsAmazon.comOcadoRoyal Bank of ScotlandTechnologySupermarketsRetail industryInternetE-commerceBusinessBankingIPOsStock marketsWed, 16 Nov 2016 19:45:49 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/16/snapchats-possible-25m-flotation-may-sink-companys-appealPhotograph: Eric Thayer/ReutersPhotograph: Eric Thayer/ReutersNils Pratley2016-11-16T19:45:49ZRedfern review into housing: worth building on?https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/15/redfern-review-housing-taylor-wimpey-labour-theresa-may
<p>Taylor Wimpey chief’s Labour-backed study offers little fresh insight, but contains ideas Theresa May could consider pinching </p><p>It’s a bit cheeky of Pete Redfern to bill <a href="https://www.theguardian.com/business/2016/nov/14/most-renters-feel-theyre-unlikely-to-buy-home-in-next-five-years-review">his report into the decline of home ownership</a> as “independent”. He is chief executive of Taylor Wimpey, one of the country’s biggest housebuilders, so he doesn’t arrive on the scene free of commercial interests. Never mind. He was asked by the Labour party to lead the study and can’t be blamed for accepting the gig. More to the point, his review isn’t obviously stuffed with measures that would benefit builders of private homes.</p><p>It does not, for example, recommend that the government should throw yet more subsidies at homebuyers in the manner of George Osborne, the chancellor who did so much to improve housebuilders’ profits and share prices. Instead, the Redfern review says help-to-buy schemes are inflationary and should be restricted to first-time buyers seeking lower-priced homes. Quite right. Osborne’s scattergun approach was wasteful.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/nov/14/most-renters-feel-theyre-unlikely-to-buy-home-in-next-five-years-review">Most renters feel they're unlikely to buy home in next five years – review</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/15/redfern-review-housing-taylor-wimpey-labour-theresa-may">Continue reading...</a>Housing marketReal estateBusinessHousingSocietyeasyJetAirline industryVodafoneTelecommunications industryLabourTheresa MayPoliticsTue, 15 Nov 2016 22:01:01 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/15/redfern-review-housing-taylor-wimpey-labour-theresa-mayPhotograph: Rui Vieira/PAPhotograph: Rui Vieira/PANils Pratley2016-11-15T22:01:01ZBond bubble could burst with explosive impacthttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/14/bond-bubble-donald-trump-us-tax-cuts-spending-deregulation
<p>Donald Trump’s formula of tax cuts, spending and deregulation risks a US boom followed by an almighty bust</p><p>It remains early days for assessing Donald Trump’s economic plans, not least because of the difficulty in separating the serious policies from the wilder campaigning rhetoric, but the bond market seems clear on the central point: the president-elect intends to cut tax taxes, increase spending and deregulate.</p><p>Investors know what that cocktail produces. It boosts growth, at least for a while, and it generates inflation. Even famed liberal economist Paul Krugman <a href="http://www.nytimes.com/2016/11/14/opinion/trump-slump-coming.html">has switched from predicting an imminent global recession</a>. “Don’t be surprised if economic growth actually accelerates for a couple of years,” he says, because the “dire effects of Trumpism” will take time to become manifest.</p><p> <span>Related: </span><a href="https://www.theguardian.com/business/2016/nov/14/bonds-trump-prompts-inflation-tax-cuts-interest-rates">Global bonds slump as Trump prompts inflation fears</a> </p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/14/bond-bubble-donald-trump-us-tax-cuts-spending-deregulation">Continue reading...</a>BondsUS economyEconomicsWilliam HillBusinessMon, 14 Nov 2016 20:06:30 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/14/bond-bubble-donald-trump-us-tax-cuts-spending-deregulationPhotograph: Daniel Leal-Olivas/AFP/Getty ImagesPhotograph: Daniel Leal-Olivas/AFP/Getty ImagesNils Pratley2016-11-14T20:06:30ZTrump's $1tn pledge sounds impressive but beware the small printhttps://www.theguardian.com/business/2016/nov/10/donald-trump-1-trillion-infrastructure-pledge-american-investors
<p>A word of caution: the president-elect’s infrastructure plans appear to rely on money he hopes other people will provide</p><p>American investors seem naively trusting of President-elect Trump’s economic plans. On one hand, they say those wild campaign pledges to slap stiff tariffs on Chinese and Mexican imports in pursuit of the most protectionist US trade policy since the 1930s should not be taken too literally. On the other, they conclude that a Trump presidency definitely means heavy investment in infrastructure, which will be excellent news for all those suppliers of raw materials and equipment needed to upgrade roads, bridges, schools, tunnels, electricity networks and so on.</p><p>Both thoughts are understandable, of course. Even Trump has never been firm on the idea of 45% tariffs on China. It was a threat “if they don’t behave,” he said during one debate, “it doesn’t have to be 45%, it could be less”. Plenty of scope there to water down the policy.</p> <a href="https://www.theguardian.com/business/2016/nov/10/donald-trump-1-trillion-infrastructure-pledge-american-investors">Continue reading...</a>Pharmaceuticals industryBusinessTelevision industryMediaITVUS economyDonald TrumpEconomicsThu, 10 Nov 2016 19:45:58 GMThttp://www.theguardian.com/business/2016/nov/10/donald-trump-1-trillion-infrastructure-pledge-american-investorsPhotograph: AaronP/Bauer-Griffin/GC ImagesPhotograph: AaronP/Bauer-Griffin/GC ImagesNils Pratley2016-11-10T19:45:58ZWhy the markets are relatively calm after Donald Trump's electionhttps://www.theguardian.com/us-news/nils-pratley-on-finance/2016/nov/09/market-complacency-after-donald-trumps-election-will-not-last
<p>Dollar’s reputation and possible tax cuts go towards explaining reaction. But dangers presented by his presidency must not be ignored <br>• <a href="https://membership.theguardian.com/supporter?INTCMP=gdnwb_copts_editorial_mem_uselectionday_standfirst">Become a Guardian supporter</a> or <a href="https://contribute.theguardian.com/?INTCMP=co_editorial_uselectionsday_standfirst">make a contribution</a></p><p>Can’t investors see that the next US president is completely untested in office, is an economic isolationist and a geopolitical accident waiting to happen? Apparently not. Or, rather, the investment world decided such worries can wait for another day.</p><p>The election of Donald Trump provoked only brief panic. The Nikkei index in Japan, a real-time barometer as results from the US states arrived, fell 5%, but European markets were calm, relative to expectations. The FTSE 100 index, after a brief plunge, regained all the ground lost in the first hour of trading. The US dollar was broadly stable against major currencies, as was the US Treasury market.</p> <a href="https://www.theguardian.com/us-news/nils-pratley-on-finance/2016/nov/09/market-complacency-after-donald-trumps-election-will-not-last">Continue reading...</a>Donald TrumpUS elections 2016BusinessUS newsUS politicsWorld newsGlobal economyEconomicsWed, 09 Nov 2016 13:45:01 GMThttp://www.theguardian.com/us-news/nils-pratley-on-finance/2016/nov/09/market-complacency-after-donald-trumps-election-will-not-lastPhotograph: Saul Loeb/AFP/Getty ImagesPhotograph: Saul Loeb/AFP/Getty ImagesNils Pratley2016-11-09T13:45:01ZSmall businesses should not have had to shout about RBS to be heardhttps://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/08/small-businesses-rbs-royal-bank-scotland-marks-pencer
<p>The perception remains that an apology, not to mention a few quid in redress, has been dragged out of Royal Bank of Scotland</p><p>Royal Bank of Scotland did not tip healthy small businesses into default and did not seek to profit from their collapse. Nor did it request personal injections of cash from owners when it had already decided a business was doomed, <a href="https://www.theguardian.com/business/2016/nov/08/rbs-facing-400m-bill-to-compensate-small-business-customers">says the Financial Conduct Authority</a>. But it did sometimes charge fees it didn’t explain properly, and there was a failure to support small businesses “in a manner consistent with good turnaround practice”. Thus the bank will pay compensation to address “poor outcomes” at a cost of about £400m. Is everybody happy now?</p><p>Of course not. The period under the microscope is 2008-13, so the process of inspection has been painfully slow. The perception also remains that an apology, not to mention a few quid in redress, has had to be dragged out of RBS.</p> <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/08/small-businesses-rbs-royal-bank-scotland-marks-pencer">Continue reading...</a>BusinessRoyal Bank of ScotlandBankingRegulatorsMarks & SpencerRetail industryTue, 08 Nov 2016 19:11:49 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2016/nov/08/small-businesses-rbs-royal-bank-scotland-marks-pencerPhotograph: Vladimir Zakharov/Getty/Moment OpenPhotograph: Vladimir Zakharov/Getty/Moment OpenNils Pratley2016-11-08T19:11:49Z